ICYMI: The Risks of Using Section 202 (C) to Intervene in Electricity Markets

Patrick Hefflinger

In light of President Trump’s comments last week, the American Action Forum’s Director of Energy Policy Philip Rossetti warns of the dangers posed by federal intervention in electricity markets. Please see an excerpt below:

“If Trump orders the usage of 202(c) to defend non-economic plants when there is no threat to reliability, he would undermine competition in electricity markets. Such an order would signal to competitors or potential entrants into electricity markets that profits are uncertain because the government is willing to protect incumbents. Further, it would show that the government lacked the political discipline to tolerate threats to reliability or high prices during scarcity, which are exactly the signals that incentivize producers to improve electric reliability.”